Alpha Natural shareholder continues to oppose Foundation Coal merger

By Lisa Kerner

Charlotte, N.C., July 23 - Alpha Natural Resources, Inc.'s largest shareholder, Duquesne Capital Management, LLC, confirmed that it will vote against the company's proposed merger with Foundation Coal Holdings, Inc. on July 31.

Duquesne said it reaffirmed its previously announced decision after reviewing the company's July 21 proxy materials, according to a schedule 13D/A filed on Thursday with the Securities and Exchange Commission.

The shareholder, with an 8.31% stake in Alpha Natural, also took into consideration "overwhelming evidence disclosed in recent days in other coal companies' earnings releases and earnings calls," the filing said.

In May, Alpha Natural and Foundation Coal announced they agreed to combine in an all-stock transaction valued at $2 billion to form the third-largest coal producer in the United States.

As previously reported, Foundation Coal stockholders will receive 1.084 shares of the new company for each share of Foundation Coal. Each Alpha Natural share will automatically become one share of the combined company.

Alpha Natural Resources, located in Abingdon, Va., supplies Appalachian coal to the steel industry, electric utilities and other industries.

Foundation Coal is a Linthicum Heights, Md.-based coal producer.

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